PROJECT REPORT

on
Reebok
Submitted to fulfill the
requirement for the course of

PRODUCT AND BRAND MANAGEMENT

TERM 3
By APO – 4, Section B
Angad Singh Khanuja – 230101018
Shiven Sharma – 230101194
Shreya Sharma – 230101195
Shreyansh Arora – 230101197
Vikas Gaurav – 230101355
Khyati Kathuria – 230103104
Sangit Nandan – 230103199

Under the guidance of

Prof. Jishnu Changkakoti
ABOUT THE COMPANY
Reebok emerged as a formidable competitor to Nike in the 1980s, earning the moniker of the
"Nike killer" by dethroning Nike as the leading athletic wear brand globally. Throughout the
decade, Reebok maintained its dominance, surpassing Nike and establishing itself as the
premier footwear brand. However, by 1989, the tide began to turn as Reebok faced stiff
competition. Despite initially outpacing Adidas and maintaining a strong position in the
market, Reebok found itself losing ground to Nike as the new millennium approached.

While Nike surged ahead, boasting sales figures nearing $10 billion, Reebok struggled to
maintain its position, hovering at a respectable $3-4 billion, on par with Adidas. The shift in
consumer preferences, coupled with Nike's aggressive marketing strategies and innovative
product launches, contributed to Reebok's decline. Despite its earlier success, Reebok faced
challenges in adapting to evolving market dynamics and failed to sustain its momentum
against the fierce competition posed by Nike. As the 2000s dawned, Reebok found itself
grappling with the reality of ceding its once-dominant position in the athletic footwear
industry.
Nike has solidified its dominance as the leading athletic wear brand, leaving Adidas trailing
behind. Reebok, on the other hand, not only failed to keep pace but experienced a decline in
revenue. Competitors like Puma, previously on the sidelines, have surpassed Reebok,
reshaping the industry landscape. Despite its early rivalry with Nike and once commanding
market share, Reebok's inability to innovate and adapt has led to its diminished relevance.
Today, it struggles to compete with the dynamic forces shaping the athletic wear market,
facing challenges from traditional competitors and emerging players.
CONSUMER ANALYSIS
Today's consumers, particularly those within the age range of late teens to early thirties,
exhibit a shifting perception of Reebok as an athletic wear brand. While acknowledging
Reebok's historical presence and nostalgia associated with its products, the consensus among
interviewees reflects a diminished relevance compared to competitors like Nike and Adidas.
Key themes emerge regarding Reebok's perceived decline, notably in product quality, style
alignment with current trends, and the absence of a strong community or brand loyalty akin
to its rivals. The interviews underscore a sentiment that Reebok's offerings, particularly in
footwear, lack the innovation, comfort, and aesthetic appeal prevalent in the market.
Furthermore, there is a notable gap in brand visibility and marketing strategies, with a
perceived absence of impactful endorsements or compelling campaigns to engage consumers.
Suggestions for revitalization include a focus on product enhancement, strategic partnerships
with influential figures, and a concerted effort to rejuvenate brand image through targeted
marketing initiatives. Overall, consumer perceptions reflect a need for Reebok to adapt and
innovate to regain its foothold in the competitive athletic wear landscape.

Following are some of the important points raised by some consumers when we interviewed
them:

Simarjiv Singh, a 22-year-old college student residing in Singapore, has a nostalgic connection
to Reebok from his school years, primarily remembering it for its basic black shoes. However,
he feels that Reebok has lost its relevance compared to competitors like Nike and Adidas. He
emphasizes the importance of product quality and building a loyal customer base, which he
believes Reebok currently lacks.

Keshav Gupta, a 21-year-old MBA aspirant from Gurugram, India, shares a similar sentiment.
He acknowledges Reebok's past popularity but notes its decline in recent years, attributing it
to the brand's failure to keep up with changing trends and consumer preferences. Keshav
suggests that Reebok needs to increase its social media presence, introduce more trendy
products, and enhance its brand value to regain its position in the market.

Aashna Mohendra, a 21-year-old HR trainee in Delhi, reflects on her childhood association

with Reebok but feels that the brand has lost touch with its consumers compared to newer,
trendier brands. She emphasizes the importance of comfort and style in athletic wear and
suggests that Reebok focus on improving its marketing strategy and innovating its products to
regain market share.
Dishant Vanjani, a 23-year-old MBA student formerly from Bangalore, now living in Delhi,
expresses a strong perception of Reebok as outdated and obsolete. He highlights the
importance of product quality and celebrity endorsements in his decision-making process.
Dishant believes that Reebok could revitalize its brand by collaborating with prominent sports
personalities to introduce new product lines, similar to successful strategies employed by Nike
and Puma.

Overall, the consumer analysis of Reebok reveals a common theme of nostalgia for the brand's
past glory, coupled with a recognition of its current struggle to stay relevant in the highly
competitive athletic wear market. To regain its position, Reebok needs to focus on product
innovation, marketing strategies, and building stronger connections with its target audience,
particularly younger consumers who prioritize style, comfort, and brand image.

GLANCE AT REEBOK’S COMPETITORS

NIKE
Nike is an American company that was founded in 1964. It manufactures, designs, and sells
the world’s largest line of athletic apparel, footwear, accessories, etc. Regarding revenue, it
stands today as the largest athletic wear brand in the world. Over the years, Nike has
established itself as a branded house. Some notable names aligned to the Nike brand include;
Air Max, Air Jordan, Nike Blazers, Air Force 1, Air Max, etc. Its tagline “Just Do It” encapsulates
Nike’s positioning as a brand that motivates and inspires people to push their limits
ADIDAS
Coming in just behind Nike, Adidas is one of the world’s largest manufacturers of sports goods.
Registered and headquartered in Germany, it is the largest sports apparel brand in Europe.
For a brief period from 2005 – 2021, Adidas bought the Reebok brand before selling it to
Authentic Brand Group in 2021. Its tagline “Impossible is Nothing” conveys a message of
empowerment
UNDER ARMOUR
Established in 1996, Under Armour is based out of the United States. It is a leading athletic
wear brand known for its innovative performance apparel and footwear. Under Armour has a
very strong brand image particularly in the United States, considered as a direct competitor
to Nike and Adidas. Under Armour is well known for being a pioneer in moisture-absorbing
and innovative apparel for sportspeople. Its tagline “I Will” is concise but strong, emphasizing
determination and a will to succeed
 PUMA
Founded in 1948, Puma stands today as the world's third-largest sportswear brand. The
German multinational markets products under PUMA, stitched, and Cobra Golf brand names.
The company also sponsors the national teams of various sports all over the world. Its tagline
“Forever Faster” communicates the brand's focus on speed, agility, and performance. The
emphasis on being Forever Faster suggests a relentless pursuit of speed and performance.

PORTER’S FIVE FORCES ANALYSIS

Applying Porter’s five forces analysis on the overall sports and athletic footwear, apparel, and
accessories industry will provide us with the overall picture of the competitiveness and
attractiveness of the industry.

• Rivalry Among Existing Competitors

• Number of Competitors - The number of competitors in the industry is quite high
including both regional and global players which makes the competition intense and
requires constant innovations and new designs to stay competitive
• Diversity of Competitors - The level of product differentiation offered in the industry
is relatively low which leads to pricing competition and aggressive marketing strategies
to gain market share
• Industry Growth - It is a high-growth industry and there are still many untapped
markets that provide an opportunity for the companies to penetrate newer markets
and gain more customers

• Threat of New Entrants

• Brand Loyalty - Brands that are already established enjoy strong brand recognition and
consumers tend to prefer these brands over new players which makes it difficult for
new entrants to gain market share
• Economies of Scale - Established companies reap the benefits of economies of scale in
manufacturing and distributions due to which it is difficult for a new player to compete
on cost
• Capital Requirement - The industry requires the competitors to have huge capital to
build their distribution networks and to successfully implement pricing, promotional,
and marketing strategies

• Bargaining power of Suppliers

• Number of Suppliers - Generally there are large pools of suppliers available to obtain
the required raw materials for a company which provides a lot of options from which
they could procure the necessary material
 • Switching Cost - The cost to switch from one supplier to another for a certain kind of
material for manufacturing is not too high which makes it easier for a company to
choose its suppliers and in dictating prices
• Forward Integration - It is very difficult for a particular supplier to bypass the
distribution and procurement channel, therefore the chances of forward integration
are quite low

• Bargaining power of Buyers

• Number of Buyers - There are large numbers of buyers, and they also have a wide
range of brands and products to choose from which gives them high bargaining power
over the company
• Switching Costs - It is quite easy for a customer to switch between brands as per their
convenience and based on the options available to them due to which companies must
differentiate their offerings
• Price Sensitivity - Consumers are generally price sensitive and seek value for their
money which makes it difficult for a company to demand premium pricing for their
products.

• Threat of substitutes
• Number of Substitutes Available - There may be substitutes like casual wear, formal
shoes, or other types of accessories but none of them offer the same benefits or value
to customers
• Relative Price Performance - The value offered to the customers by the companies in
the sports apparel industry is quite differentiated and cannot be matched by its nearest
substitutes.
• Customer willingness to switch - Most consumers will not be willing to switch the
products offered by the sports apparel industry with other offerings made by its
substitutes.
While evaluating all these factors it is visible that, the sports and athletic footwear, apparel,
and accessories industry exhibit high competitive intensity between various brands, with
established players enjoying significant market power and share over new entrants, but at the
same time facing constant pressure from their rivals, buyers, and from the threat of
substitutes.

RECOMMENDED POSITIONING STATEMENT

To all the people who are sports enthusiasts and young at heart and seeking versatile athletic
wear that seamlessly transitions from training grounds to everyday life. Reebok is the brand
that aims to provide you with athleisure products that are "Fit for every move, Styled for every
groove". We aim to elevate your workout experience with functional fashion.
Over the years, Reebok has grappled with inconsistency in its brand positioning and identity,
hindering its ability to cultivate a loyal customer base. This lack of clarity has been evident
even during its peak in the 1980s and '90s when it briefly surpassed Nike as the leading
athleisure brand worldwide. During this time, Reebok capitalized on the burgeoning aerobics
trend, propelling its ascent to the top. However, as the aerobics craze waned, so did Reebok's
dominance.
The issue lies in Reebok's struggle to define itself beyond transient trends. The brand has
undergone numerous campaigns, attempting to position itself in various niches such as
fashion, basketball, and tennis. This inconsistency has left consumers uncertain about how to
perceive Reebok. Is it primarily a performance brand, a fashion-forward label, or something
else entirely?
This lack of a clear, enduring identity has contributed to Reebok's difficulty in retaining market
share and fostering long-term customer loyalty. Moving forward, Reebok must focus on
establishing a cohesive brand narrative that resonates with consumers across different
demographics and interests, thereby forging a stronger connection and engendering loyalty
beyond fleeting trends.
Reebok's new brand identity, as articulated through our positioning statement, reflects a
strategic pivot towards capturing the hearts and minds of sports enthusiasts and youthful
consumers seeking versatile athletic wear. By targeting individuals who are both passionate
about sports and embrace an active lifestyle, Reebok positions itself as a brand that
understands their needs and aspirations.
The phrase "Fit for every move, Styled for every groove" encapsulates Reebok's commitment
to providing products that seamlessly blend performance with style. It signifies a shift towards
offering athleisure wear that not only supports intense workouts but also effortlessly
transitions into everyday wear, catering to the multifaceted lives of modern consumers.
Furthermore, the emphasis on "elevating your workout experience with functional fashion"
underscores Reebok's dedication to innovation and quality. By integrating functionality with
fashion-forward design, Reebok aims to enhance the overall workout experience, empowering
individuals to not only perform at their best but also look and feel confident while doing so.
Overall, Reebok's new brand identity positions it as a trusted companion for those who
prioritize both performance and style in their athletic wear choices. It represents a cohesive
and consistent brand image focused on meeting the evolving needs of today's sports
enthusiasts and youthful consumers, thereby revitalizing Reebok's relevance in the
competitive market landscape.
PRODUCT STRATEGY
The product strategy of Reebok in the last few years has changed a lot of times. This is due to
the reason that before being acquired by Authentic Brand Group in 2021, Adidas was following
a different product strategy to revamp and leverage its brand value.
Reebok started to differentiate its products by offering products in two different categories.
They established a Sports Category in 2018 and started production under this in 2019. This
Sport category combines product divisions focused on specialized fitness activities and
functional innovation with a focus on style innovation for these products. These products
remained at the forefront of fitness and true to the culture and communities that Reebok
consumers train, run, and live in. Reebok’s second category, Classics, reinforces the brand’s
deep roots in fitness and pop culture across multiple iconic silhouettes and trend-right lifestyle
products. Adidas took a step ahead and unified the Reebok under one logo across both
Classics and Sports. This evolution allowed the brand to connect fitness, fashion, and pop
culture in one powerful Reebok voice across all its products.
When Authentic Brand Group took over Reebok they wanted to compete across multiple
critically important categories. They believe Reebok has a long heritage behind itself which
gave them the boldness to position Reebok as a prestigious brand among its competitors.
Building on its vision, we believe in the next three years Reebok should again try to make its
product relevant among consumers through irreverence, disruption, and counterculture, led
by its great archive and innovation.

• They need to add new silhouettes which could be a modern outlook to some of its
classics to connect with their customers but at the same time focus on newer and
fresher approach
• They need to focus on creating meaningful collaborations for their product offerings
which depict a story of heritage or some territory that both brands are in that makes
it rich and authentic
• They should work with streetwear brands that are known for their creativity like
Palace, Bape, Sacai, and others to connect with younger customers who are looking for
new fits regularly
• They need to invest heavily in newer technologies to develop their latest products and
they need to stick to these products which they haven’t been doing properly in the
past. Customers generally blow out on newer products on day one itself, so they need
to be a little more patient
• They need to showcase their products more effectively; they need to create an
experience for their customers so that they can connect with their offerings and seek
value from them
• Reebok’s basketball culture was one of their most coveted product lines which has
been eroding recently. They need to look into revamping their product lines and
leverage their already successful product which could be launched as retros
PROMOTIONAL STRATEGY
Product placement:
As part of Reebok's recommended promotional strategy moving forward, we strongly advise
investing in strategic product placement. Over time, Reebok's brand visibility has declined
significantly. In the early 2000s, Reebok enjoyed notable presence in offline stores and gained
attention through partnerships, such as with MS Dhoni in the cricket bat category. However,
the challenge of seamlessly transitioning from one product or campaign to another has
hindered Reebok's sustained visibility.
Reebok should prioritize strategic product placements in various media platforms, including
movies, OTT TV shows, and YouTube influencer partnerships to address this issue. By
emulating successful examples like Jordan's prominent appearance in the movie "Creed" and
Under Armour in “Furious 7” , Reebok can effectively boost the visibility of its products. This
strategic approach not only enhances brand exposure but also cultivates Top Of Mind
Awareness (TOMA) among consumers, thereby revitalizing Reebok's presence in the market.
Athlete Endorsement:
Athlete endorsements have proven to be a winning strategy for many market leaders in the
sports apparel industry, such as Nike and Adidas. These brands have successfully used athletes
like Michael Jordan, Cristiano Ronaldo, and Lionel Messi to personify their mission and vision,
instilling a winning mentality among consumers.
Initially, Reebok also capitalized on athlete endorsements, featuring global stars like Shaquille
O'Neal and Allen Iverson. However, over time, Reebok lost its way and failed to attract the
next generation of athletes who could carry its legacy forward. This disconnect has made it
challenging for consumers to relate to the Reebok brand.
To address this issue, Reebok needs to reassess its promotional strategy and identify athletes
from various sports who can become the face of the brand and inspire the next generation.
Successful athlete endorsements can provide a sustained competitive advantage for brands in
the sports apparel industry, making it imperative for Reebok to prioritize these partnerships
to regain relevance and consumer connection.
Considering India and the United States are the biggest markets for Reebok, sports like cricket
and kabaddi in India and Basketball and Football in the United States could be considered for
athletes to partner with. Initially, it is enough to focus on these 2 markets considering Reebok
is in decline and cannot afford to sign athletes immediately all over the globe. Over the next
few years, they can look to enter Europe and South America with soccer.
They can seek inspiration for this with products in different categories as well. A great example
of this is how Prime, an energy drink brand launched just over 2 years ago has partnered with
athletes all across the United States and Europe and gained a significant market share in a
hugely competitive segment, and is one of the fastest growing brands in the world.
Digital/social media campaigns:
In the realm of the sports apparel industry, digital and social media campaigns emerge as
potent tools for companies. Reebok stands poised to leverage these platforms, positioning its
campaigns to convey social messages. Recognizing that sports serve as a unifying force across
communities, cultures, and nations, Reebok can harness its strong heritage to confront various
taboos and stereotypes. Reebok, with its storied history and strong heritage, is uniquely
positioned to lead this charge. By strategically aligning its digital and social media efforts with
broader societal issues, the brand can elevate its image beyond that of a mere purveyor of
athletic wear.
Through its campaigns, Reebok can tackle a range of pressing issues, from gender inequality
and body image stigma to racial injustice and LGBTQ+ rights. By partnering with athletes,
influencers, and cultural icons who embody these values, Reebok can amplify their voices and
provide a platform for meaningful discourse and action.
For instance, Reebok could collaborate with athletes who have overcome adversity or
challenged societal norms in their respective sports. By sharing their stories and celebrating
their achievements, Reebok can inspire audiences and foster a sense of empowerment and
solidarity.

Moreover, Reebok can extend its reach beyond the realm of sports, engaging with influencers
and personalities from diverse backgrounds and industries. By showcasing individuals who are
making a positive impact in their communities or advocating for social change, Reebok can
position itself as a brand that stands for something greater than just athletic performance.

Ultimately, by leveraging its digital and social media platforms to champion social causes and
amplify underrepresented voices, Reebok can forge deeper connections with consumers and
carve out a distinct identity in the increasingly crowded sports apparel market.

PRICING STRATEGY
Reebok's revised pricing strategy positions its products competitively alongside brands like
Asics, New Balance, and Under Armour. While some of Reebok's offerings are priced similarly
to industry giants such as Nike and Adidas, the absence of premium offerings places Reebok
in a distinct market segment. This pricing approach is deemed appropriate, as there are no
perceived issues with the quality of Reebok's products based on both consumer interviews
and secondary research.
However, to strengthen Reebok's market position and enhance its competitiveness, it's
advisable to consider a few pricing recommendations. Firstly, Reebok could introduce a
premium product line targeted at consumers willing to pay a higher price for enhanced
features or exclusive designs. This move would expand Reebok's market reach and cater to a
broader range of consumers. Additionally, exploring subscription-based models or loyalty
programs could incentivize repeat purchases and foster brand loyalty among customers, for
example, with every purchase of a product consumers garner some loyalty points which can
allow them to avail of some discounts after a specific number of purchases These pricing
adjustments, combined with a focused effort on positioning, identity, and visibility, can further
elevate Reebok's standing in the athletic wear market.

REEBOK REVIVAL: PROMOTIONAL STRATEGY AND BUDGET ALLOCATION

Sales Growth & Marketing Budget:
Year 1:
Sales Growth Target: 10-15% increase over the previous year's sales figure (based on Statista
data).
Marketing Budget Allocation: 50-60% of the projected sales growth (e.g., if sales grow by $100
million, the marketing budget would be $50-$60 million).
Budget Breakdown:

30% - Product Placement (Negotiations with studios, and influencers for placements).
40% - Athlete Endorsements (Signing athletes, campaign development).
30% - Digital/Social Media Campaigns (Content creation, influencer partnerships, social media
advertising).

Rationale:
Higher initial marketing investment is crucial to establishing a brand presence and gaining
traction. The focus should be on building brand awareness through product placement and
social media campaigns. In the first year, it is imperative to focus on securing key athlete
endorsements to establish brand relatability.

Year 2:
Sales Growth Target: 15-20% increase over year 1.
Marketing Budget Allocation: 40-50% of the projected sales growth.
Budget Breakdown:
25% - Product Placement (Maintain brand visibility).
35% - Athlete Endorsements (Renew existing contracts, potentially add new athletes).
40% - Digital/Social Media Campaigns (Focus on engagement, community building).
Rationale:
Maintain marketing momentum while adjusting budget based on sales performance. Leverage
established partnerships for product placement and athlete endorsements. Increase focus on
digital/social media to build brand loyalty and community engagement.

Year 3:
Sales Growth Target: 10-15% increase over year 2.

Marketing Budget Allocation: 30-40% of the projected sales growth.

Budget Breakdown:
20% - Product Placement (Maintain selective placements).
30% - Athlete Endorsements (Focus on performance-based renewals).

50% - Digital/Social Media Campaigns (Leverage data for targeted campaigns, influencer
marketing).

Rationale:
Reduce marketing spend as brand awareness and partnerships are established. Focus on data-
driven digital/social media campaigns for targeted marketing and influencer partnerships.

Conclusion:
Reebok can make a comeback by using a mix of marketing strategies. This includes putting
their shoes in movies and shows, having famous athletes wear them, and using social media
to talk about important issues. By spending more money on marketing at first, Reebok can
get people interested again. As sales grow, they can spend less on marketing but keep using
social media to connect with customers. This plan can help Reebok grow its sales over the
next 3 years, but they'll need to keep track of how well it's working and make changes as
needed.
References:

• https://www.retaildive.com/news/reebok-was-meant-to-be-a-nike-killer-how-the-
brand-lost-its-no-1-spot-adidas-sale-of-reebok/603733/
• https://www.statista.com/statistics/268422/net-sales-of-the-reebok-brand-
worldwide-since-2006/
• https://thestrategystory.com/blog/reebok-swot-analysis/
• https://advertisers.mediaradar.com/reebok-advertising-profile

Link to word document containing full interview transcripts - https://imtgzb-

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